TASI ends flat as volumes dip to seven-year low

Saudi Arabia’s market settled flat on Tuesday following a choppy session where the benchmark index fluctuated between a high of 6,827 and a low of 6,810, amid Ramadan-thinned volumes.

The benchmark Tadawul All Share Index (TASI) closed at 6,821, just 2 points lower.

However, the daily trading turnover at SAR 1.6 billion, was the lowest seen in the market in about seven years.

In a note on market activity, Al Rajhi Capital said that the Saudi stock market’s year-to-date traded value, excluding REITs, declined 40 percent year-on-year.

“Higher institutional ownership may be associated with declining trading activity, as institutions tend to have lower portfolio churn (annualized), which stands at just 0.13x portfolio value while it is 2.05x for Saudi individuals,” the note added.

At a sector level, energy and materials declined while banks and insurance advanced.

Bellwether stock, SABIC, edged lower to SAR 98.70. Other prominent decliners included Savola, and Saudi Electricity, both down 1 percent to SAR 45.70 and SAR 21.30 respectively.

Meanwhile, National Medical Care Co. was among top gainers; up 4 percent to SAR 45.95. The company said the financial impact of a contract it won from the Ministry of National Guard, will be over SAR 7 million per month beginning Q2.

Write to Brinda Darasha at brinda.d@argaamplus.com